The Minister of Housing and Urban Development, Ahmed Dangiwa, has called on foreign investors to explore opportunities within Nigeria’s housing sector, particularly through the Federal Government’s Renewed Hope Cities and Estates Programme.
This appeal was made during the Saudi Real Estate Forum, where Dangiwa highlighted the potential for growth in the country’s real estate market, particularly due to Nigeria’s significant housing deficit.
Dangiwa pointed out that in 2024, Nigeria’s real estate sector contributed around 5.2 percent to the nation’s GDP, and market volume is projected to reach $2.25 trillion by the end of 2025. He emphasized that despite this growth, there remains a substantial opportunity for investment, especially in residential real estate, as the demand for housing continues to rise.
The Saudi Real Estate Forum, under the theme “Balance and Innovation in the Real Estate Landscape,” also saw participation from other influential figures such as Abdullah Al-Attiya, the Minister of Municipality of Qatar, and Abdulla Muththalib, the Minister of Construction, Housing, and Infrastructure of the Maldives.
Nigeria’s housing deficit, currently at 28 million units, is being exacerbated by rapid urbanization, and the government is tackling this challenge by focusing on large-scale housing delivery through public-private partnerships, innovative financing, and government-led interventions. Efforts are also being made to involve state governments in facilitating land access for affordable housing projects, as land acquisition remains a significant barrier.
The minister highlighted the role of housing in driving economic growth, social stability, and national development, noting that achieving a balance between affordability and profitability is essential. To address this, the Nigerian government has introduced incentives such as bankable offtake guarantees, facilitated land access, and low-interest financing to encourage investment in affordable housing.
In terms of sustainability, Dangiwa discussed the importance of energy-efficient buildings, local materials, and smart construction techniques to reduce long-term costs. The Ministry of Housing is also collaborating with international partners like IFC EDGE to promote green building practices and support sustainable housing development.
To improve housing accessibility, the government is expanding the reach of the Federal Mortgage Bank of Nigeria (FMBN), recapitalizing it with N500 billion to provide more affordable mortgage options. Additionally, the government is exploring new funding models, including leveraging the Nigerian Capital Market to attract private sector investment for housing development.
Rent-to-own schemes are being introduced to offer flexible payment options for prospective homeowners. Technology and digital transformation are also key areas of focus, with the government working on initiatives like the National Land Registration and Documentation Programme, in collaboration with the World Bank, to improve transparency and land titling.
Dangiwa also emphasized the importance of localizing housing production through modular and prefabricated housing technologies to reduce reliance on expensive imports and make housing more affordable. He reassured investors that the Nigerian government is committed to creating a conducive environment for real estate growth through strong policies, regulatory frameworks, and investment incentives.
The minister concluded by expressing confidence that with smart policies, innovative financing, sustainable construction, and digital transformation, Nigeria can achieve a more accessible, affordable, and sustainable housing sector in line with the Renewed Hope Agenda of the Tinubu Administration.
“The Real Estate Investment Fund, targeting 12 per cent mortgage interest rates instead of the market’s 28-30 per cent, aims to provide bankable off-taker guarantees for developers,” Dangiwa explained.
” Innovation and balance in real estate are not mutually exclusive. With smart policies, innovative financing, sustainable construction, and digital transformation, we can make housing more accessible, affordable, and sustainable in alignment with the Renewed Hope Agenda of the Tinubu Administration,” he added.